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Major US Financials Cracking: CDS Rerack

Tyler Durden's picture




 

As financial equities are underperforming so we are also seeing the major US banks widening in CDS land - closer and closer to record wides in the case of BofA and GS. Their credit curves are also inverting further as equity catches up to recent weakness.

BofA is almost at record wides from early October 2011 - well ahead of 2008/9. GS also looks close to recent peaks though still below previous peaks for now. Goldman is 160bps wider since the start of November!

JPM +6 to 179bps

BofA +17 to 456bps

GS +14 to 410bps

MS +10 to 516bps

WFC +3 to 175bps

C +13 to 315bps

Charts: Bloomberg

 

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Wed, 11/23/2011 - 15:23 | 1907811 GeneMarchbanks
GeneMarchbanks's picture

They're all hedged, it's cool.

MS especially. Also JPM is fine... bought CDS on itself just like GS.

Wed, 11/23/2011 - 15:23 | 1907833 johngaltfla
johngaltfla's picture

LOL! Hedged with what? Greek CDS?

Wed, 11/23/2011 - 15:31 | 1907869 Dr. Richard Head
Dr. Richard Head's picture

Hedged with Collateralized Bernanke Beard Trimmings I believe. 

Wed, 11/23/2011 - 16:13 | 1908076 Hard1
Hard1's picture

Bought CDS on themselves!!!ROFL!!!....brilliant, now they cannot even go bankrutpt without collecting a windfall to pay the last goodbye bonuses.

Wed, 11/23/2011 - 21:10 | 1909042 unununium
unununium's picture

The truth -- that they bought CDS on each other from each other -- is only slightly less ridiculous.

Wed, 11/23/2011 - 21:17 | 1909062 Buck Johnson
Buck Johnson's picture

No way my good man, no way.  They are hedged with Italian bonds which they insured with Spanish bonds which are backed by Harrisburg Pennsylvania municipality bonds with CDS.  Everything is safe and secure.

Wed, 11/23/2011 - 15:27 | 1907849 curbyourrisk
curbyourrisk's picture

To bad they were hedged through MF Global.

Wed, 11/23/2011 - 16:46 | 1908244 SHEEPFUKKER
SHEEPFUKKER's picture

8-ball, corner pocket. 

Wed, 11/23/2011 - 23:42 | 1909361 covert
covert's picture

hedged? it always is until default.

http://expose2.wordpress.com

 

Wed, 11/23/2011 - 15:21 | 1907814 hedgeless_horseman
hedgeless_horseman's picture

 

 

But Dr. Bernanke just order more stress tests.  If we can't rely on the therapeutic value of diagnostics, then what can we rely on?

Wed, 11/23/2011 - 15:22 | 1907825 GeneMarchbanks
GeneMarchbanks's picture

Mark-to-hallucination?

Wed, 11/23/2011 - 15:25 | 1907839 hedgeless_horseman
hedgeless_horseman's picture

 

 

Unfortunately, this shit is all to real.  Mark it zero, Dude.

Wed, 11/23/2011 - 15:44 | 1907922 iDealMeat
iDealMeat's picture

Mark-to-Masturbation.  It's all a big circle jerk after all..

Wed, 11/23/2011 - 15:24 | 1907836 Amish Hacker
Amish Hacker's picture

The cleansing power of a full system reset?

Wed, 11/23/2011 - 15:29 | 1907854 hedgeless_horseman
hedgeless_horseman's picture

 

 

Just lie on your left side, Uncle Sam.

Wed, 11/23/2011 - 15:30 | 1907861 mayhem_korner
mayhem_korner's picture

 

 

Elbows on the table, Mr. Dimon...

Wed, 11/23/2011 - 15:43 | 1907916 fuu
fuu's picture

"Moooon Riiiiiiveeeeeeeer"

Wed, 11/23/2011 - 15:48 | 1907953 Papasmurf
Papasmurf's picture

Both barrels!

Wed, 11/23/2011 - 16:33 | 1908183 Jena
Jena's picture

Ice water?!?  Cold in more ways than one...

Wed, 11/23/2011 - 15:22 | 1907823 Cult_of_Reason
Wed, 11/23/2011 - 15:45 | 1907935 Crack-up Boom
Crack-up Boom's picture

Thanks for the link!

Wed, 11/23/2011 - 15:24 | 1907834 BennyBoy
BennyBoy's picture

They are passing the FED stress test with flying colors.

Just look at their high scores in the above charts!

Wed, 11/23/2011 - 15:24 | 1907835 BW
BW's picture

If they blow up they make money.

Wed, 11/23/2011 - 15:32 | 1907876 mayhem_korner
mayhem_korner's picture

 

 

Is it incest if these guys all underwrite each others CDS's? 

No one expects to get paid on these things in the imaginary event of default, right?

Wed, 11/23/2011 - 15:26 | 1907845 Dick Darlington
Dick Darlington's picture

Goldman is 160bps wider since the start of November!

Maaaaaa! Meatloaf and beer! Now! It's party time!

Wed, 11/23/2011 - 15:29 | 1907858 mayhem_korner
mayhem_korner's picture

 

 

It's beginning to look a lot like 2008, everywhere I go...

Wed, 11/23/2011 - 15:31 | 1907867 dcb
dcb's picture

14:30 weds pre thanks giving. we just hit my taget reentry point using speed lines

Wed, 11/23/2011 - 15:36 | 1907889 mayhem_korner
mayhem_korner's picture

my taget reentry point

 

A bit too Bawnie Fwank-ish sounding.  Just sayin'...

Wed, 11/23/2011 - 15:46 | 1907941 DogRockets
DogRockets's picture

Eat my shorts, a-hole. 

Wed, 11/23/2011 - 16:18 | 1907871 HD
HD's picture

No bailout. Nationalize them for two years, then break them up into a half a dozen not TBTF banks.

Wed, 11/23/2011 - 15:32 | 1907873 The Axe
The Axe's picture

I don't believe the volume, to me it feels like shorts pressing.... So...in my humble opinion ....I nice buying opportunity.. market feels washed out.....just bot 10000 C  

Wed, 11/23/2011 - 15:41 | 1907890 hedgeless_horseman
hedgeless_horseman's picture

 

 

...to me it feels like shorts pressing...

...just bot 10000 C

Feelings, nothing more than feelings,
Trying to forget my feelings of Bove.
Teardrops rolling down on my face,
Trying to forget my feelings of Bove.

Feelings, for all my life I'll feel it.
I wish I've never met you, Dick; I'll never be long again.

http://www.cnbc.com/id/42937720/Citigroup_Can_Triple_by_2013_Dick_Bove

Wed, 11/23/2011 - 15:47 | 1907949 The Axe
The Axe's picture

Now now boys....life is a gamble....  I hope to reap some rewards....Just my thoughts.... and my money....

Wed, 11/23/2011 - 15:52 | 1907973 scatterbrains
scatterbrains's picture

It does feel like one of those inflection points.. would prefer to see C dip below the recent low intraday, then close higher while its RSI is all coiled up bullishly.  Also I noticed TLT is not being supported by RSI up here and suggests it's time to head lower.

Wed, 11/23/2011 - 15:59 | 1908012 GeneMarchbanks
GeneMarchbanks's picture

Axe & sb,

I commend your brave risk taking. I also commend your admitting it here on ZH. You're both brave. Or deranged. Best of luck.

Wed, 11/23/2011 - 16:46 | 1908248 hedgeless_horseman
hedgeless_horseman's picture

 

 

May 6, 2011 when BAC at $12.31

 "I don't see any reason why Bank of America is not going to double from the current price," Bove says.

Down -53% to date to $5.18  Missed it by that much.

Wed, 11/23/2011 - 15:40 | 1907903 GeneMarchbanks
GeneMarchbanks's picture

'just bot 10000 C'

I hope you're joking or you don't know what you're saying... for your sake.

Wed, 11/23/2011 - 15:37 | 1907892 lolmao500
lolmao500's picture

Die goldman, DIE MOTHERFUCKING DIE.

Wed, 11/23/2011 - 15:48 | 1907958 MFL8240
MFL8240's picture

Can you think of anything we can do to help implode GS and JPM?  I'm in.

Wed, 11/23/2011 - 18:03 | 1908596 Dingleberry
Dingleberry's picture

A-FUCKING-MEN!!!!!!!!!!!!!!!!!!!!

Wed, 11/23/2011 - 15:39 | 1907899 gatorengineer
gatorengineer's picture

The Squid is sick, should we take it to a vet?

Wed, 11/23/2011 - 15:41 | 1907907 GeneMarchbanks
GeneMarchbanks's picture

Deep fryer methinks.

Wed, 11/23/2011 - 15:53 | 1907978 mayhem_korner
mayhem_korner's picture

 

 

I like to imagine Chief Brody tossing Goldman chum off the back of the Orca.  :D

Wed, 11/23/2011 - 15:42 | 1907905 slaughterer
slaughterer's picture

Omitted by author  

Wed, 11/23/2011 - 15:41 | 1907911 slaughterer
slaughterer's picture

TBTF is now ready to die.  

Wed, 11/23/2011 - 15:42 | 1907912 holmes
holmes's picture

This just in from Dicked Bove:

You people are morons; buy B of A.

 

Wed, 11/23/2011 - 15:44 | 1907925 slaughterer
slaughterer's picture

And yet, no climax panic-selling in the equities of TBTF.  Just a slow, steady erosion.  

Wed, 11/23/2011 - 15:50 | 1907965 mayhem_korner
mayhem_korner's picture

 

 

Major awareness gap.  You've got CNBC reporting that Gold is tracking equities (guess they missed that one's up 20% for 2011 and the other is flat to down).  Truth and information still separated by a huge chasm. 

Wed, 11/23/2011 - 15:55 | 1907980 GeneMarchbanks
Wed, 11/23/2011 - 15:45 | 1907936 Critical Path
Critical Path's picture

$0.14 left to spare for BAC oh me oh my

Wed, 11/23/2011 - 15:46 | 1907942 sitenine
Wed, 11/23/2011 - 15:47 | 1907944 Cone of Uncertainty
Cone of Uncertainty's picture

I'm guessing Brian Moynihan just shart himself.

Wed, 11/23/2011 - 16:41 | 1908220 Deadpool
Deadpool's picture

how's that Uncle Warren trade working out? and where is he on the Goldman bail out of '08? GE, Harley D?

Wed, 11/23/2011 - 15:48 | 1907956 Stockmonger
Stockmonger's picture

This is going to give US banks record profits as they profit hand-over-fist from the crashing market values of their debt!

Wed, 11/23/2011 - 15:50 | 1907964 youngman
youngman's picture

So who wants to own bank stock over this weekend...or Insurance stock...or a Greek bond over this weekend....???? not me...I gots me gold matey...eh barros o Rum

Wed, 11/23/2011 - 15:53 | 1907982 peekcrackers
peekcrackers's picture

CDS are like herrpies ...They  Flair up under stress .

Wed, 11/23/2011 - 15:55 | 1907983 Dr. Engali
Dr. Engali's picture

15 more pennies and BAC has a four handle. Time for a revese split.

Wed, 11/23/2011 - 15:56 | 1907989 monopoly
monopoly's picture

Why would anyone with 1/2 a brain and an IQ over 50 ever invest in a broken bank. You have no idea what is on or off their books, they change the numbers at will and the model is completely broken.

You want to take a bet, go to Las Vegas, the 6 block strip is lit up and the girls are pretty. Just do not go much outside the strip, we are in a depression here.

Wed, 11/23/2011 - 16:24 | 1908131 earleflorida
earleflorida's picture

poor 'mr. macau's, s.wynn, and s. adelson 

Wed, 11/23/2011 - 17:16 | 1908377 Use of Weapons
Use of Weapons's picture

Living in the middle of a desert with extremely vulnerable power, water and food infrastructure is not where I'd choose to be when TSTF.

 

Brave.

Wed, 11/23/2011 - 21:38 | 1908523 DosZap
DosZap's picture

Use of Weapons

Lake Mead,animals,birds,and I would far rather be there than in Dallas,SF,NYC,etc,etc,where the animals will be two legged

You know it's coming stock up, and pile it on.

Many places to hide, and cache supplies, and weapons.

Wed, 11/23/2011 - 15:58 | 1908006 monopoly
monopoly's picture

TBT to lifetime low? wow.

Wed, 11/23/2011 - 15:59 | 1908013 Motorhead
Motorhead's picture

Ah, but don't worry.  These banks/financials are backed by the full faith and credit of the American tax payer.

 

Wed, 11/23/2011 - 16:05 | 1908042 slaughterer
slaughterer's picture

Just bought 100,000 shares of BAC at $5.14.

Wed, 11/23/2011 - 16:10 | 1908070 Critical Path
Critical Path's picture

Balls of steel going into the holiday, good luck to you sir. 

Wed, 11/23/2011 - 16:40 | 1908213 Deadpool
Deadpool's picture

somehow I doubt if you have $500k to lose you're spending time on ZH.

Wed, 11/23/2011 - 18:05 | 1908599 Dingleberry
Dingleberry's picture

Next time buy MF Global.....

Wed, 11/23/2011 - 16:10 | 1908072 dcb
dcb's picture

uup target also hit at target 22.30 (based on weekly ascending triangle. )

Wed, 11/23/2011 - 16:33 | 1908187 azzhatter
azzhatter's picture

Oh please! I saw Dickless Bove on Kudblow last night and he said BOFA is fine, great, well capitalized even if the common goes to zero.

Wed, 11/23/2011 - 16:45 | 1908240 Motorhead
Motorhead's picture

Was that f'in chump Oy-vey Bove' really on Kudlow last night? (I don't get CNBC here.)  F-me, man, that chump just won't go away.  But then again, he's probably a great contrarian play.

Wed, 11/23/2011 - 16:52 | 1908260 Deadpool
Deadpool's picture

I'm sure they have a hard time getting real guests anymore. especially a week like this...and I'm sure BofA pays him a retainer. Remember CNBC was a creditor of MF Global. all for one and one for all.

Wed, 11/23/2011 - 19:27 | 1908839 Ted Baker
Ted Baker's picture

WHERE IS THIS ASSHOLE CALLED BOVE AND HIS BUY RECOMMENDATION ON US BANKS..ALL THESE US BANKS ARE GOING BUST MAN...GET THE PARTY STARTED!!!!!!!!!

Thu, 11/24/2011 - 04:00 | 1909969 Grand Supercycle
Grand Supercycle's picture

USD selling pressure continues and the prospect of an equity xmas rally and EURUSD bullish spike returns.

http://stockmarket618.wordpress.com

Do NOT follow this link or you will be banned from the site!